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NOTE 13 - SUBSEQUENT EVENTS
6 Months Ended
Jun. 30, 2019
Subsequent Events [Abstract]  
(13) SUBSEQUENT EVENTS

(13) SUBSEQUENT EVENTS

 

a) Convertible Notes - Variable Conversion

In the third quarter 2019, the Company entered into five convertible notes in exchange for $437,400. Two of these notes mature in 9 months and three in one year. These notes carry an interest rates of 8% and 12% and one has a 10% Original issue Discount (OID). The OID will be recorded as a debt discount and amortized over the life of the loan. The notes convert into shares of the Company’s common stock at a price of 50%, 55% and 60% of the lowest trade price for the Common Stock during the 10 and 20 Trading Day period ending on the latest complete Trading Day prior to the Conversion Date. Based on the variable conversion terms the beneficial conversion rights embedded in these convertible notes has been recorded as a derivative liability in the amount of $545,329, with a related debt discount of $378,536, and an immediate loss of $166,793.

 

The Company paid off in cash two convertible notes in the amount of $303,834.

 

d) Stockholder’s Equity

In the third quarter 2019, the Company issued 100,000 shares of common stock valued at $5,450 as a debt inducement fee. The Company issued 7,005,246 shares of common stock valued at $281,651 to settle $80,320 of debt. The Company issued 1,537,246 shares of common stock valued at $32,282 for cash under a securities purchase agreement from October 2018.